The coronavirus has plunged the world into a “crisis like no other” – preventing people from going out to work, to socialize and do personal errands thus closing businesses and putting the economy at the verge of crumbling. As the year draws to an end, Forbes Real Estate Council, which consists of senior-level executives who have deep and diverse experience in the real estate industry, shares their predictions for the remainder of 2020 until early time next year.
Here’s what the 15 entrepreneurs from Forbes Real Estate Council foresee on the current and future state of the market.
- Demand For Housing Will Remain Robust. Despite the high unemployment rate, member Gary Lanham believes that millennials and baby boomers will power through to keep the economy moving.
- Home Sales Will Get Closer To 2019 Levels. Many homeowners will fall behind on their mortgages, creating distressed property sales.
- Mass Adoption Of Tech To Limit Human Interaction. A lot of the council’s predictions are related to technology and increasing remote business, such as the rise in virtual tours and other implementations that will reduce human interaction.
According to Vered Schwarz of Guesty, we will see the real estate industry increasingly implement tools like keyless entry systems, voice-activated appliances, etc., to minimize anything face-to-face or anything that requires physical touch.
Furthermore, using automated messaging solutions to send emails noting amenities in-property, check-in instructions and are seen to be more favorable.
Most predictions are positive ones even in the face of the pandemic. Unfortunately, one prediction is inevitable, given the ongoing rise of unemployment.
4. Substantial Increase In Foreclosures. As more homeowners fall behind on their mortgages and commitments to their forbearances, experts forecast a surge in foreclosures.
Homeowners May Have Learned their Lesson the Last Time
According to Lex Levinrad, a representative of The Distressed Real Estate Institute, “The foreclosure surge will happen toward the end of the year and the beginning of next year as banks start foreclosing on delinquent mortgages.”
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